Health Insurance Prices Going Up in Covered California
Health Insurance Prices Going Up in Covered California. Health Insurance Prices Going Up in California's Marketplace Next Year
Officials from Covered California announced that health insurance premiums sold through the state marketplace will increase by nearly 10% in the coming year.
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| Health Insurance Prices Going Up in Covered California |
This is the largest rate hike since 2018. The increase is due to the complexities in the healthcare system, according to Jessica Altman, the Executive Director of Covered California.
Health Insurance Prices Going Up in Covered California | insuranceamericareviews.info
However, many Californians will be protected from the full impact of these increases, thanks to federal and state financial assistance. About 90% of enrollees are eligible for some form of financial aid, and around 20% will not experience any change in their monthly premium.
The marketplace provides health insurance plans for approximately 1.6 million Californians, with some plans costing as little as $10 a month.
Experts are concerned about the trend of rapidly increasing healthcare costs. Even in the private market, there are significant price hikes.
Anthony Wright, the Executive Director of Health Access California, a consumer advocate group, emphasizes the importance of providing help to individuals seeking health coverage.
During the COVID-19 pandemic, the federal government offered $3 billion to help control rising healthcare costs in California. This aid kept Covered California premium increases below 2% from 2020 to 2022.
While federal assistance has been extended for two more years, the 2024 increase reflects inflationary pressures after the pandemic, including higher drug expenses, more people seeking medical care, labor shortages, and higher wage costs, as stated by Jessica Altman.
Health Insurance Prices Vary Across Regions, Some Enrollees Facing Double-Digit Increases
According to state data, the rate hikes for health insurance differ depending on the region, with more than one-third of enrollees potentially experiencing a double-digit increase. People living in Mono, Inyo, and Imperial counties may see the largest price hike at 15.8% compared to last year, and these same counties had the highest increase last year too.
To help offset the higher costs, Covered California has federal and state subsidies, providing immediate help. However, advocates call for policymakers to focus on long-term strategies to control healthcare expenses.
Recently, the Covered California board approved a plan to make coverage more affordable by eliminating deductibles for about 650,000 enrollees in the coming year. The plan also reduces out-of-pocket costs for doctor visits and prescription drugs.
Despite the rate increase, Covered California aims to offer the most substantial financial support ever in 2024 for Californians enrolling in health care coverage.
The projected premium increase has been called "hefty" by experts, and some people may end up paying the full cost. People who were previously covered by Medi-Cal, the state's public insurance program for low-income individuals, may also join Covered California, potentially leading to higher premiums.
The state had paused checking Medi-Cal eligibility during the COVID-19 emergency, but after resuming monthly reviews, about 225,000 Californians lost their Medi-Cal coverage.
Covered California's enrollment period runs from November to the end of January, and it is supported by the California Health Care Foundation (CHCF), which aims to ensure affordable and accessible healthcare for everyone.
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